Burkina Faso grants permit to state-owned gold miner for Bouboulou project
Burkina Faso has awarded an industrial mining permit to state-owned miner SOPAMIB for the Bouboulou gold project, according to a statement, advancing the military-led government’s push for greater state control of the mining sector.
Military-led governments across the Sahel and in neighbouring Guinea have increasingly favoured state-owned mining companies as they seek larger returns from their mineral wealth.
SOPAMIB, Burkina Faso’s state miner, lay dormant after its 2014 creation until 2024 reforms revived it for direct mine development.
Burkina Faso’s Council of Ministers said on Thursday that a subsidiary of SOPAMIB named SOPAMIB Bouboulou would develop the gold mine in the country’s north-central Yako commune.
Mines Minister Yacouba Zabre Gouba called the project “a revolution”, breaking with a model that left mining development largely to private operators.
The project will require more than 32 billion CFA francs ($56.1 million) in investment and is expected to operate for over 15 years, the government said, without detailing funding plans.
The mine will produce more than 7 metric tons of gold and generate more than 39 billion CFA francs in direct revenue, excluding dividends, over its life, the statement said.
It will also create and sustain about 1,200 direct and indirect jobs, it said.
Burkina Faso is a major African gold producer, with mines operated by Endeavour, IAMGOLD, West African Resources and Nordgold, among others.
($1 = 570.0000 CFA francs)
(Reporting by Burkina Faso Newsroom; Writing by Maxwell Akalaare Adombila; Editing by Robbie Corey-Boulet and Jan Harvey)
Fortuna expects Senegal gold project permit within weeks
Fortuna Mining expects to receive the final permit for its Diamba Sud gold project in Senegal within weeks, its chief executive told Reuters, adding that with government support the country could become a major regional mining hub.
Senegal, traditionally a mineral sands and phosphate miner, is pushing to expand its gold sector. It remains a small gold producer by West African standards, with output of about 334,000 ounces in 2025, well below regional leaders Ghana and Mali. Gold miners in the country include Endeavour, which operates the Sabodala-Massawa mine, and Morocco’s Managem, which runs the Boto mine.
Fortuna, a West Africa-focused gold miner, is investing nearly $400 million to develop Senegal’s Diamba Sud project, targeting the first gold output in 2028 and peak annual production of about 230,000 ounces.
Senegal’s faster permitting
Fortuna CEO Jorge Ganoza, in an interview with Reuters on Wednesday, said Senegal had approved Diamba Sud’s environmental and social impact assessment within nine months, noting that such approvals in Peru, Mexico and parts of North America can take years.
“We’re only now waiting for our final construction permit, which we expect should come in a matter of weeks,” he said.
Senegal’s mines ministry did not immediately respond to a request for comment.
Senegal’s recent political turbulence, including cabinet changes and tensions between President Bassirou Diomaye Faye and ousted Prime Minister Ousmane Sonko, has not altered investment plans, he said.
The Canadian miner is placing orders for critical equipment ahead of a final construction decision to lock in delivery schedules amid tightening mining supply chains, he said.
The company’s feasibility study estimates the project could generate an internal rate of return of about 60% and a net present value of roughly $1 billion based on a gold price of $3,500 per ounce.
Fortuna is spending more than $15 million on exploration at the project and further discoveries could make the project more profitable.
Beyond Diamba Sud, Fortuna has signalled plans to deepen its footprint in the region, saying it is evaluating acquisition and exploration opportunities elsewhere in Senegal and in Ivory Coast and Guinea.
Deals could be announced by the end of the year, Ganoza said.
Senegal has a “unique opportunity” to establish itself as a sought-after mining jurisdiction as investors continue to channel capital into stable West African countries, he said.
Consistency in permitting, taxation and mining regulations will be critical to attracting long-term investment, he said.
(By Maxwell Akalaare Adombila; Editing by Robbie Corey-Boulet and Susan Fenton)
No comments:
Post a Comment